Briefs: Hyatt earnings beat: Summit buys NewcrestImage hotels

Hyatt beats in Q3: Hyatt Hotels Corp. beat expectations with its 3Q21 earnings report on Wednesday with net income of US$120 million, or US$1.15 per diluted share, compared to a net loss attributable to Hyatt of US$161 million, or $1.59 per diluted share, in the third quarter of 2020. Adjusted net income was US$241 million, or US$2.31 per diluted share, compared to adjusted net loss attributable to Hyatt of US$150 million, or US$1.48 per diluted share, in the third quarter of 2020. Adjusted EBITDA for the third quarter approached 70% of 2019 levels and more than doubled from the prior quarter. Hyatt, like others, said leisure demand continues to lead the recovery and momentum for business and group travel is growing. Comparable system-wide RevPAR increased to US$93.70 in the third quarter, and decreased 31.8% compared to the third quarter 2019. Comparable owned and leased hotels RevPAR increased to US$117.33, and decreased 35.5% compared to the third quarter 2019. Net rooms growth increased 6.9% compared to the third quarter of 2020. Pipeline of executed management or franchise contracts reached approximately 103,000 rooms for 3Q21, an increase of 2% compared to 3Q20.

AC Hotel by Marriott/Residence Inn by Marriott Frisco Station is part of Summit’s acquisition

Summit buys NewcrestImage hotels: Summit Hotel Properties announced on Wednesday that it has entered into a deal to acquire a 27-hotel portfolio totaling 3,709 guest rooms, two parking structures and various financial incentives through its existing joint venture with Singapore’s GIC for US$822 million from affiliates of NewcrestImage. The deal comprises US$776.5 million, or US$209,000 per key, for the hotel portfolio, US$24.8 million for the two parking structures and US$20.7 million for the various financial incentives. NewcrestImage will become one of Summit’s largest shareholder and continue to own and operate the 325-room Magnolia Hotel in Dallas and the 164-room Sinclair Hotel in Fort Worth, Texas.

EOS acquires Red Jacket Resorts: EOS Investors, New York, has acquired Red Jacket Resorts, Yarmouth, Massachusetts, which has a portfolio of resort destinations with locations in Cape Cod, Massachusetts, and White Mountains of New Hampshire. Red Jacket consists of more than 650 keys in six lodging options. “We are excited to welcome a portfolio of high-quality properties to EOS’s collection of more than 30 drive-to leisure resorts on the East Coast,” said Tom Burns, EOS managing director.

Menin adds in Delray Beach: Menin Development has acquired Crane’s Beach House Boutique Hotel & Luxury Villas Delray Beach, Florida. The purchase marks the second venture into the hospitality industry for Menin Development, a privately held owner, developer, and manager of commercial real estate properties headquartered in Delray Beach. The acquisition was privately funded with financing by Northeast Bank with a purchase price of US$10 million from the Crane family who originally built the hotel 20 years ago. There are no immediate plans to change the property, which Menin Development will own and operate. Menin Development launched their first hotel project earlier this year with the opening of The Ray, a 141-room property in downtown Delray Beach.

Fairmont grows in Mexico: Fairmont Hotels & Resorts announced its first resort in Baja California Sur, Mexico, the Fairmont La Paz Puerta Cortes Resort and residences, slated to open in 2023 and located within the Puerta Cortes resort community. The resort will include 155 rooms and 24 suites, while residences will offer 61 one to four-bedroom units. The resort’s master planning and architectural design is being led by hospitality design firm Gensler, supported by studios from Mexico City and Costa Rica. The resort’s interiors and design of F&B outlets are being developed by design studio Roman and Williams. Fairmont is among the first luxury brands to announce a property in La Paz.

IHG’s Vignette Collection franchising in US: IHG Hotels & Resorts has launched franchise sales in the U.S. for its newly-launched soft brand, Vignette Collection. IHG launched the brand in August, along with the first announced properties in Thailand and Australia. Vignette Collection is the latest entrant in the Luxury & Lifestyle portfolio, which consists of more than 400 hotels and 100,000 rooms. Interested hotel owners and operators in the U.S. can learn more about the new brand in a complimentary virtual event on December 7.

Ashford refis 701-room Marriott: Ashford Hospitality Trust has successfully refinanced its existing CMBS loan for the 701-room Marriott Gateway Crystal City in Arlington, Virginia, with a best-in-class institutional balance sheet lender. The new, non-recourse senior mortgage totals US$86 million and has a three-year initial term with two, one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of LIBOR + 4.65% with a 0.10% LIBOR floor. The initial funding for the loan will be US$84 million, with the additional US$2 million available to fund debt service for the first 30 months of the loan, if needed. Real estate investment banking firm RobertDouglas advised on the deal.

Volcom, Selina to launch surf club: Authentic Brands Group, New York, has entered into a long-term partnership for board sports brand Volcom with Selina, Panama, to launch the Selina x Volcom Surf Club, a surf-focused experience for remote workers and “digital nomads.” The surf club will offer accommodations, co-working spaces, surf lessons and events and will host competitions and community meets through the year. The first club will open this fall with five more expected to open in key surfing destinations including Sayulita, Mexico; Florianopolis, Brazil; Peniche, Portugal; Santa Teresa & Jaco, Costa Rica; and Bocas del Toro, Panama. Selina and Volcom will also be collaborating on a limited capsule collection, which will be customized for each location.

American’s holiday travel plans: Americans are showing an eagerness to travel, with 42% planning to travel between Thanksgiving and mid-January taking an average of two trips, according to Deloitte’s 2021 Holiday Travel Survey. While one in four lower to mid-income travelers are likely to tighten their budgets as compared to 2019, 85% of high-income households plan to match or surpass their 2019 travel budgets. Despite the high travel sentiment, travelers continue to be concerned about COVID-19, with 64% saying they are likely to book a flight if masks are mandatory and 58% likely to book a flight if proof vaccination is made compulsory. Flexibility in work, aided by remote working, has spurred 75% of travelers to plan their work during trips to get additional days. Older Americans are cautious about the holiday season, with 36% of those aged over 55 years planning to travel (compared to 45% of 18- to 34-year-olds). Those aged over 55 are also less likely to participate in travel activities and experiences. Almost 70% of travelers plan a road trip compared to 37% who plan to fly, citing enjoyment (38%) and convenience (28%) as the top reasons, above health (12%). While 60% of travelers are likely to stay with friends and family, 54% will stay at hotels or a private rental.

Business travel spending trend report: Global spending on business travel is projected to increase by more than a quarter in 2021 and reach two-thirds of the pre-COVID levels by 2022, according to the ‘Adapting to Endemic COVID-19: The Outlook for Business Travel’ report by World Travel & Tourism Council (WTTC) in collaboration with McKinsey & Co. This modest rise for business travel with global business travel spend increasing 26% in 2021 will be followed by an additional rise of 34% in 2022. Revival in business travel is being led by the Middle East, with business spending likely to rise 49% this year and 32% the next year, followed by Asia Pacific (spending to rise 32% this year, 41% next year), Europe (set to rise 36% this year and 28% the next year), Africa (set to rise 36% this year, 23% next year) and Americas (set to rise 14% this year and 35% in 2022). Although business travel has been slow to revive, some sectors — manufacturing, pharmaceuticals, construction companies — have been early to rebound while service-oriented and knowledge industries — like healthcare, education, professional services — may see longer term disruption.

Europeans confident about travel: Europeans are increasingly becoming confident about travel, with 66% of Europeans planning trips through March 2022, according to the “Monitoring Sentiment for Domestic and Intra-European Travel — Wave 9” report by the European Travel Commission. For the first time since October 2020, Europeans have been planning their holidays evenly through the next six months, an indication that they are much more confident to set out on spontaneous trips. More than one among two Europeans with short-term travel plans are likely to visit other European countries, a 41% rise since September 2020. Preference for domestic trips, however, dipped 18% over the past 12 months. Mediterranean destinations emerged as the most favored destinations, with Italy and Spain (both 9%), France (8%) and Greece (7%) ranking high among travelers. Desire for city breaks reached a peak in 2021, with a 43% rise since summer this year.

Oakwood Premier to open in Kuala Lumpur: Oakwood, a wholly owned subsidiary of Singapore-based Mapletree Investments, has signed a management agreement with PNB Merdeka Ventures Sdn. Berhad, a wholly owned unit of Kuala Lumpur-based Permodalan Nasional Berhad, to launch the Oakwood Premier brand of luxury serviced residences at the Merdeka 118 in Kuala Lumpur. The Oakwood Premier Kuala Lumpur will be housed in one of the residential towers inside the Merdeka 118 development, which includes 348 serviced residences with one, two and three-bedroom categories. Slated to open in December 2024, the Oakwood Premier Kuala Lumpur will be Oakwood’s second property in the city, after Oakwood Hotel & Residence Kuala Lumpur.

US group meetings increase: October group meetings in the U.S. rose 30.4% over September 2021, according to a monthly data by Knowland. Average attendees per event in October 2021 (110) was stronger than 2019 (80) for the second month in a row. The average space used in October 2021 was 2,734 square feet compared to 2,680 square feet used in October 2019. The top five growth markets were Phoenix, Washington D.C., Atlanta, Orlando and Boston. The corporate segment represented 69.6% of meeting and event business, with the healthcare and technology segments leading as the largest industry segments.